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6 August 2010

Delivering value by creating desirable brands

TITAN INDUSTRIES LIMITED


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Disclaimer

1

Certain statements are included in this release which contain words or phrases such aswill, aim, will likely result, believe, expect, will continue, anticipate, estimate,intend, plan, contemplate, seek to, future, objective, goal, project, should,will pursue and similar expressions or variations of these expressions that are forward-looking statements. Actual results may differ materially from those suggested by theforward-looking statements due to certain risks or uncertainties associated with our

expectations with respect to, but not limited to, our ability to implement our strategysuccessfully, the market acceptance of and demand for our products, our growth andexpansion, the adequacy of our allowance for credit to franchisees, dealers anddistributors, technological changes, volatility in income, cash flow projections and ourexposure to market and operational risks. By their nature, certain of the market riskdisclosures are only estimates and could be materially different from what may actuallyoccur in the future. As a result, actual future gains, losses or impact on net income could

materially differ from those that have been estimated.

In addition, other factors that could cause actual results to differ materially from thoseestimated by the forward-looking statements contained in this document include, but arenot limited to: general economic and political conditions in India and the other countrieswhich have an impact on our business activities; inflation, unanticipated turbulence ininterest rates, foreign exchange rates, the prices of raw material including gold and

diamonds, or other rates or prices; changes in Indian and foreign laws and regulations,including tax and accounting regulations; and changes in competition and the pricingenvironment in India. The Company may, from time to time make additional written andoral forward-looking statements, including statements contained in the Companys filingswith SEBI and the Stock Exchanges and our reports to shareholders. The Company doesnot undertake to update any forward-looking statements that may be made from time totime by or on behalf of the Company, to reflect events or circumstances after the date

thereof.


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Titan Industries

The surging spirit of India !


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Titan Industries Pioneer

Breaker of rules Leader in two businesses: premium and mass

market Manufacturer, designer, brand owner, marketer,

retailer and after-sales service provider Unique culture First company to dare to challenge the Swiss B2C and B2B player

In four businesses from 2007-08 One of the Jewels of the Tata Group


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Our HeritageOur HeritageOur HeritageOur Heritage the TATA Groupthe TATA Groupthe TATA Groupthe TATA Group

Titan is a part of the TATA Group having a turnover of about

USD 70 bn (2008-09) with 1/3rd coming from India, equivalentto over 2.5% of Indias GDP and having the biggest marketcapitalization in India

The Tata group is Indias largest employer in the private sector 357,000+ employees across 85 companies

The TATA group has achieved many Firsts for India: First private sector Steel mill First private sector Power utility First luxury hotel (Taj) First Airline (now Air India)

The Worlds least expensive car (Tata Nano) Indias largest software company (TCS) Indias largest watch & jewellery manufacturer (Titan)


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About UsAbout UsAbout UsAbout Us

Titan is the worlds fifth largest, integrated manufacturer-brandfor watches

Commencing production in 1986-87, the Company is today the

leader in the Watch & Jewellery businesses in India First & largest player in the branded jewellery segment in

India with Tanishq

>60% share of the organised watch market in India

Over 90 million watches sold across 30 countries,cumulatively

Manufacturing Facilities

Main Watch & Jewellery plants in Hosur near Bangalore

Watch assembly plants at Dehradun, Baddi, Pantnagar and

Roorkee.ECB plant in Goa; small Jewellery-making facility at Dehradun

Investment of US$150 million in 450,000 sq.ft. state-of-the-art manufacturing facilities

Owned by TATA: 25.17% and TIDCO: 27.88% Professionally managed by TATA group & an independent Board


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Recognition and Awards in many categories

Indias most admired consumer durables company

having the most trusted brand in India -TITAN. Both TITAN and TANISHQ adjudged best retail brands

in IFF survey

JRD QV (Malcolm Baldrige) Award in 2006 to the

Watch Division, and score was re-affirmed in 2007and in 2008.

ET and Great place to work survey selects Titan asbest employer in Retail and among the top 25nationally

President of India Award for best employer of thephysically challenged.


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Our businesses

Watches

Jewellery

Eyewear

Precision Engineering

CurrentlyMarketingour Products in

26 countries

with a largerfootprint in theMiddle East and

Asia-Pacific

regions


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Our Brands

TITAN

SONATA

FASTRACK

XYLYS

TANISHQGOLD PLUS

TITAN EYE+

ZOOP!

ZOYA

HELIOS


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Our businesses

Premium

Mid-premium

Mass

Watches Jewellery Others

+

B2B businesses: PED and MBA

B2C businesses: Products

Watches Jewellery Others

B2C businesses: Retail

299 stores301584 sq ft

116 stores

2,68511 sq ft

27 stores,13607sq ft

95 stores80914sq ft

2 stores4,534 sq ft

2 stores6,628 sq ft

Fastrackaccessories

29 stores49,284 sq ft


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Retailing..

Widespread anddifferentiated

2

Helios

store

2 Zoya

stores

8

Fastrack

Kiosks

116

Tanishqst

ores

299

World of

Titan

stores

27

Fastrack

stores

95

Titan

Eye+

stores

29

Goldplusst

ores


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(Rupees in Crores) Watches Jewellery Others Corporate Total

Sales / Income from Operations 1051.89 3497.47 153.76 - 4703.12

Less : Excise Duty 26.55 - 2.15 - 28.70

Net Sales / Income from Operations 1025.34 3497.47 151.61 - 4674.42Add : Other income 1.44 6.72 0.15 3.55 11.86

Net Sales / Income from Segments 1026.78 3504.19 151.76 3.55 4686.28

Profit before interest and taxes 144.73 254.68 -38.89 -13.78 346.74

Less : Interest 25.42

Profit before taxes 321.32Less : Taxes 71.00

Net profit after taxes 250.32

Capital Employed 227.09 371.80 78.02 125.02 801.93

2009-10 Summarised Results

Additional Amortisation of trademarks during the year Rs.24.04 CroresWatches Rs. 18.44 Cr

Jewellery Rs. 5.6 Cr


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ADDITIONAL AMORTISATION OF TRADEMARKS

India will be adopting International Financial Reporting Standards (IFRS) from 1 April2011.One of the requirements of the Accounting Standards is reflected in AS 26 whichmandates a review of the expected economic benefits from the assets held by a company.

Until 31 March 2006, the Company was exporting its products (watches and jewellery) to

three overseas associate marketing companies in London, Dubai and Singapore. Thesecompanies were marketing the products to distributors and other buyers in theirrespective territories, and consequently, the Overseas Trademark Rights to TITAN,TANISHQ and the other trademarks used by the Company were also held by an overseasassociate company.

From 1 April 2006, the Company started exporting its products directly to the overseasdistributors and other buyers in various countries. In August 2006, the Company alsobought over the Overseas Trademark Rights at the book value of about Rs 63 crores andhas since been amortising this intangible asset at 10% annually. About one-seventh of thisvalue pertains to jewellery and the balance pertains to watches.

In March 2009, the Company discontinued its jewellery operations in the USA, and the

Jewellery Division decided to concentrate on operations in India and to totally discontinuethe export of jewellery. Thus, there would be no future economic benefit from theoverseas trademarks pertaining to jewellery, and the Company has therefore amortisedthe balance intangible pertaining to jewellery. A similar exercise was then done forwatches and a total additional amortisation of Rs 24 crores has therefore been accountedfor 2009-10.


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THE THREE YEAR JOURNEY

INCOMEUp

13%

Up%23

Up27%


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CAPITAL EMPLOYED


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PROFITABILITYUp39%

Up57%


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MARKET CAPITALISATION

5001018

3530

44005038

3462

8132

10501

0

2000

4000

6000

8000

10000

12000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 30th

June

2010

Market Capitalisation

Crossed US$ 2 Billion


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(Rupees in Crores) Watches Jewellery Others Corporate Total

Sales / Income from Operations 260.84 945.17 54.30 0.00 1260.31

Less : Excise Duty 6.94 0.00 0.54 0.00 7.48

Net Sales / Income from Operations 253.90 945.17 53.76 0.00 1252.83

Add : Other income 0.12 5.37 0.04 2.49 8.02

Net Sales / Income from Segments 254.02 950.54 53.80 2.49 1260.85

Profit before interest and taxes 41.64 68.26 1.67 -0.41 111.16Less : Interest 2.53

Profit before taxes 108.63

Less : Taxes 27.35

Net profit after taxes 81.28

Capital Employed 268.76 276.30 95.68 241.37 882.11

April June 2010 Summarised Results


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2010-11 Q1 Highlights

Company Income crossed Rs 1250 Crores (over US$ 265 million)

PBT crossed Rs 100 Crores (over US$ 20 million)

PAT crossed Rs 80 Crores (over US$ 17 million)

All businesses benefited from improved Consumer sentimentand from a longer Wedding season during the quarter

Watches saw good growth in the premium TITAN brand,

resulting in a better product-mix and improved margins

Jewellery saw sales growth of 49%, inclusive of a 20% rise in goldprices

The Eyewear segment grew by about 30% and made a small

profit, but the retail business is yet to break even Precision Engineering also grew its topline, but made a small

loss

The total number of retail outlets across all three businesses

crossed 560 and the total area of retail space crossed 700,000s ft


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PERFORMANCE 2010-11 FIRST QUARTER

INCOMEWatches

172209

254

0

100200

300

2008-09 2009-10 2010-11

Income Rs. Cr

J ewellery

616 636950

0

500

1000

2008-09 2009-10 2010-11

Income Rs. Cr

Company

810 884

1261

0

500

1000

1500

2008-09 2009-10 2010-11

Income Rs. Cr

Up22%

Up%42

Up49%


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Watches (EBIT)

17 29

42

0

2040

60

2008-09 2009-10 2010-11

Rs. Cr

J ewellery (EBIT)

3551

68

0204060

80

2008-09 2009-10 2010-11

Rs. Cr

Company (PBT)

44 64109

0

100

200

2008-09 2009-10 2010-11

Rs. Cr


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CAPITAL EMPLOYED

Watches

292349

269

0

200

400

2008-09 2009-10 2010-11

Cap. Emp Rs. Cr

J ewellery

254

278 276

240

260

280

2008-09 2009-10 2010-11

Cap. Emp Rs. Cr

Company

612760 882

0

500

1000

2008-09 2009-10 2010-11

Cap. Emp Rs. Cr


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I. Watch Business


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The Watch Market & Industry in

India India is an under-penetrated market for watches only 27

% of Indians own a watch

Total estimated market in 2009-10

Volume ~ 44 mn units

Value: Rs 3100 Crores (USD 600 Mn) at retail

(We have a 22% volume share and a 40% value share)

Vast proportion of the Indian market is below Rs 500

~ 65% by volume (24% by value)

Market has been split into: Low end, Mass market,Premium, and Luxury


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TITAN Citizen

Timex

Watch Market Map

Rs 500 1000 2000 4000 5000 30,000 +

Formal / Classic

Fashion/Sporty

Sonata,HMT,

Maxima

Espirit, Swatch FossilGiordano, DKNY,Carrera

Tommy Hilfiger

Raymond WeilTissot

Omega,Rado,Longines

Tag HeuerHugo BossC Dior

Price

Fastrack

XYLYS

10000

Nebula


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Our market and brand leadership of >50% uses the

muscle of a vast distribution network

World of Titan295Showrooms

126Towns

Fastrack24

Showrooms 15Towns

Helios2

Multi-brand store2

Towns

Service Centers745

Centers345

Towns

11,000Dealers

ALL INDIA 2500Towns


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OUR WATCH BUSINESS OVERVIEW


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INTERNATIONAL BUSINESS

One of Indias first companies to market a consumer

brand overseas. Titan watches are present in 26 countries outside India Titan is among the top 3 watch brands in several

Asian countries

Titan launched in South Africa in July 2010. Sold over 625k watches valued at Rs 70 crores. Total export sales of over Rs 101 crores in 2009-10

including jewellery, watch components and precision

engineering items.


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II. Jewellery Business


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Jewellery Market & Industry highlights


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TANISHQ TODAY A BRIEF OVERVIEW


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Gold Plus :Size of the opportunity

Semi-urban and rural market estimated to be as much as 40% of thetotal : Over Rs 30,000 crs.

Value conscious consumers, buying traditional jewellery

Very fragmented industry with under-karatage still prevalent in manyparts of the country

A new business model and a new brand to exploit this opportunity

Sales of Rs 390 crs in 2008-09, and over Rs 440 crs in 2009-10

29 outlets as at 31 March 2010.


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OUR JEWELLERY BUSINESS OVERVIEW


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III. Precision Engineering

Business


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Precision Engineering Business

Rationale Leveraging Engineering capabilities

B2B business balances risk of B2C businesses

The Opportunity

India growing as a manufacturing base for precision productsacross industries

Cost pressures and offset requirements guarantee a longterm opportunity

High cost of switching for customers Large & growing market: The global market for precision

engineering products addressable by Titan is Rs.135,000 cr.


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Current position: 3 segments 3 streams

Automotive

Aerospace

Medical

Precisioncomponents

Dash board

instruments

Sub systems

Market size Rs.1,35,000 Cr.

AutomationSolutions

Market sizeRs.575 Cr

Domestic &International

DomesticMarketOnly

TSMGStudy


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Precision Engineering Business

The Customers

Eaton, USA Bosch, India

Hamilton Sunstrand, USA Lucas, India

Microtechnica, Italy Tata Motors, India

Schlumberger, USA Timken, India

Ford, UK Turbo Energy, India

Visteon, USA / India Stanadyne, India

Tyco Electronics, India

The Plan Targeting a break-even in 2010-11


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IV. Eyewear Business


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THE EYE WEAR BUSINESS

Started in 2004-05 by marketing Sunglasses under theFastrack brand

Targeted the youth segment

Pilot project for Prescription Eyewear started in March

2007

90 Titan Eye+ outlets as on 30 June 2010


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THE EYEWEAR MARKET AN UNTAPPED

OPPORTUNITY

Growth: Market has been growing in double digits ~ 15-20% per annumand likely to sustain

Demand drivers: Urbanization, literacy, Penetration of TV & computers,Poor eye health due to lifestyles/ improper diet, etc.

Incidence:30% of population typically needs correction in vision ~ 300 mn

Users: 84mn users which is about 25% of those who need the correction

Consumers change their glasses / frames once in 3 to 4 years on an average

Market size:25-35 million units per annum

Rs 1500-1800 crores per annumRepeat purchase is a regular feature from adolescence to old age.Customer lifetime value is very high

Almost everyone over 40 yrs needs correction.


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OUR BUSINESS PROPOSITION

Product / Service Offering:

- Eye checking, Optometry

- Range of frames - Titan & licensed brands

- Range ofBranded Lenses

- Sunglasses Titan, Fastrack & licensed brands

- Contact Lenses, Accessories

To enter as a retail brand Chain of Stand Alone

Stores


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WHERE WILL WE PLAY IN THE VALUE CHAIN

Frame andlens mfg.

Wholesaledistribution

Lensfinishing

andassembly

RETAIL,SERVICE

Designand

Marketing

Lens mfg. Unitopened

Focus on strengths and high margin areas:DESIGN, RETAIL, SERVICE & MARKETING

Tie up withreputed lensbrands & In-store fitting labs

O U T S O U R C E


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Way Forward


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2010-11 Turnover to grow by about 20% over previous

year to target Rs 5,700 crores (US$ 1.25 billion)

Operating Profit to grow in similar fashion

Continued retail network expansion to

330 World of Titan outlets

130 Tanishq outlets30 GoldPlus outlets

40 Fastrack outlets

125 Titan Eye+ outlets

15 Helios outlets

2 Zoya outlets

Th l fi h f ld


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The last five years saw a three-fold

growth.

d h f ll b


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and in the next five years we will become

a US$ 3 billion company ! !!


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Further information is available onwww.titan.co.in


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THANK YOU

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